India's fraying Gulf oil ties get a fillip on US' sanctions on Russia

State-run refiners plan to renew or enhance optional volumes under existing contracts, struck on a fiscal basis, despite higher sourcing costs

Even as Indian refiners were completing a series of meetings this month with West Asian suppliers of crude oil to discuss term-contract renewals for 2025-26, amid growing uncertainties over the fate of Russian supplies, one thing stood out: As an industry veteran remarked, “You can buy cake, you can buy sweets, you can buy anything, but Saudi Arabia is bread and butter crude oil.”

 

That pretty much explains why state-run refiners, which were planning early to trim term contracts with Saudi Arabia because of higher prices, especially after getting discounted Russian oil in their facilities, have reversed their stance and